results for q3 2017 - daimler ag · 2017-10-22 · daimler ag highlights of q3 2017 q3 and...

Q3 and January-September 2017 Results / October 20, 2017 /

Q3 and January-September 2017 Results

Bodo Uebber

Member of the Board of Management

Finance & Controlling and Daimler Financial Services

October 20, 2017

Daimler AG

Contents


Results for Q3 2017

Outlook for 2017

Development at the divisions

Daimler AG

Highlights of Q3 2017


World premiere of the the Concept EQA, the smart vision EQ fortwo, the GLC F-CELL and the Mercedes-AMG Project ONE

Commitment to further investment of appr. €1.5 billion in e-mobility in China and the United States

Launch of the FUSO eCanter – the world’s first series-produced all-electric truck

World premiere of the new Mercedes-Benz X-Class pickup

Decision on comprehensive plan for diesel engines and expanded package of diesel measures for improved air quality

Unit sales– in thousands of units –

Q3 2016 Q3 2017

754824

+9%

Net profit– in billions of euros –

Q3 2016 Q3 2017

2.7

2.3

-17%

Revenue– in billions of euros –

Q3 2016 Q3 2017

38.6 40.8

+6%

EBIT– in billions of euros –

Q3 2016 Q3 2017

4.03.5

-14%

Expansion of the mobility services business by investments in Turo(peer-to-peer carsharing), Via (joint venture for on-demand shared rides), flinc (door-to-door ridesharing) and Familonet (location messenger app), and the start of Mercedes-Benz Vans Rental

car2go, mytaxi and moovel with 15.9 million customers (+116%)

Daimler AG

Daimler Board of Management decides on first steps to

strengthen the divisional structure


Plans for three legally independent entities under the roof and lead of Daimler AG

Strengthening of the corporate structure will serve future success of Daimler

Agreement with employee representatives on cornerstones of a balance of interests will secure the future of Daimler employees

Targeted new structure will help to better focus on changing requirements of markets and customers

No plans for divestment of individual divisions

Daimler will invest a three-digit million euro amount for the first steps

Contribution of €3.0 billion to German pension fund of Daimler AG, subject to the approval of the Supervisory Board

No final decision yet by Board of Management or Supervisory Board to implement the new divisional structure

Approval to implement a possible new structure at the earliest by the shareholders’ meeting in 2019

Daimler AG

Strong free cash flow in line with good business development


Free cash flow industrial business

January-September 2017: €5.8 billion

Net industrial

liquidity

12/31/2016

Earnings and

other cash flow

impact

Working capital

impact

Other(mainly FX effects)

Net industrial

liquidity

9/30/2017

+0.9

20.8-1.2

19.7

+4.9

- in billions of euros -

-0.0

Sale of real

estate in Japan

and M&A effects

-3.5

Dividend payment

Daimler AG

Daimler AG

Strong financial and balance sheet figures support our

financial strength and A-rating


Daimler Group Dec. 31, 2016 Sept. 30, 2017

Equity ratio 22.9% 24.5%

Gross liquidity 21.7 26.9

Funded status of pension obligations -7.8 -8.0

Funding ratio 75% 75%

Industrial business

Equity ratio 44.7% 46.7%

Net liquidity 19.7 20.8

Free cash flow (January-September) 2.6 5.8

in billions of euros

Daimler AG

Financial flexibility over a 12-month period


The financial flexibility provides support to mitigate risk and volatility

through a balanced mix of funding instruments and clear principles

Daimler follows a financial management to safeguard our A-rating

and thus our attractive refinancing conditions

Available or short-term accessible liquidity is higher than the total

maturities over the next 12 months

A high financial flexibility is a key support to our A-Rating

The current liquidity position reflects the volatile market

environment, the currently required high investments for our future

business model and the required financial flexibility for our businessAvailable oraccessible

liquidity

46.9

42.0

Maturitiesover next

12 months

Other

Bank loans

Bonds

Accountdeposits

Commercialpaper

- in billions of euros -

Creditfacility

LiquidityFinancialServices

Liquidityindustrialbusiness

ABSpotential

Daimler AG

Higher units sales in all divisions based on strong product

portfolio


Q3 2016 Q3 2017 % change

Daimler Group 754.1 824.1 +9

of which

Mercedes-Benz Cars 565.6 597.3 +6

Daimler Trucks 97.1 126.6 +30

Mercedes-Benz Vans 85.2 93.1 +9

Daimler Buses 6.2 7.2 +17

in thousands of units

Daimler AG

Mercedes-Benz Cars: product highlights


The Concept EQA – the first all-electric EQ concept vehicle from Mercedes-Benz

in the compact segment

Daimler AG

Mercedes-Benz Cars: product highlights


The Mercedes-Benz GLC F-CELL – the first electric vehicle with fuel-cell

and battery drive

Daimler AG

Mercedes-Benz Cars: product highlightsWorld premiere of the Mercedes-AMG Project ONE


Daimler AG

Mercedes-Benz Cars: product highlightsPresentation of the Vision Mercedes-Maybach 6 Cabriolet


Daimler AG

Mercedes-Benz Cars: product highlightsWorld premiere of the smart vision EQ fortwo


Daimler AG

Daimler Trucks: product highlightsLaunch of the FUSO eCanter – the world’s first series-produced all-electric truck


Daimler AG

Daimler Trucks: product highlightsFUSO Super Great now also available as tractor


Daimler AG

Daimler Trucks: product highlightsDaimler Trucks tests truck platooning on public highways in the United States


Daimler AG

Mercedes-Benz Vans: product highlightsWorld premiere of the Mercedes-Benz X-Class premium pickup


Daimler AG

Mercedes-Benz Vans: product highlights


* courier, express and postal sectors

Joint venture for on-demand shared rides and pilot project for on-demand delivery

of e-commerce goods

Daimler AG

Daimler Buses: product highlights


World premiere the new Setra S 531 DT double-decker coach

Daimler AG

Daimler Financial Services: highlights Mobility ServicesOngoing business expansion


Members in millions

Cities

Combined

change*

+116%

+25%

2.8

26

3.4

14**

YTD 09/17

Transactions in millions

+162% 18.5 16.4

* car2go, moovel and mytaxi (incl. Taxibeat and Clevertaxi) combined, 09/17 (YTD) vs. 09/16 (YTD) ** Number of cities with ticketing capability of public transit

9.7

>70

52.2

Daimler AG

Revenue by division


Q3 2016 Q3 2017 % change


of which

Mercedes-Benz Cars 23.3 23.4 +1

Daimler Trucks 7.9 9.2 +17

Mercedes-Benz Vans 3.1 3.1 -1

Daimler Buses 0.9 1.0 +8

Daimler Financial Services 5.1 5.8 +14

Contract volume of Daimler Financial Services* 132.6 135.8 +2


* figures as of December 31, 2016 and September 30, 2017

Daimler AG

Revenue by region


Q3 2016 Q3 2017 % change


of which

Europe 15.6 16.8 +8

of which Germany 5.8 5.7 -1

NAFTA 11.3 11.6 +3

of which United States 9.8 9.9 +2

Asia 9.4 9.8 +4

of which China* 4.1 4.5 +10

Other markets 2.4 2.6 +9


* excluding revenue of not fully consolidated companies

Daimler AG

EBIT by division


Q3 2016 Q3 2017

- EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE* EBIT RoS/RoE*

Daimler Group 4,037 10.8 3,458 8.4

of which

Mercedes-Benz Cars 2,746 11.8 2,147 9.2

Daimler Trucks 464 5.9 614 6.7

Mercedes-Benz Vans 312 10.0 218 7.1

Daimler Buses 45 4.8 26 2.6

Daimler Financial Services 438 17.7 507 18.5

Reconciliation 32 – -54 –

* Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services

Daimler AG

Group EBIT in Q3 2017


- in millions of euros -

-337

3,458

-864,037

-84+409

• Cars +108• Trucks +339• Vans -57• Buses +19

• Cars -28• Trucks -25• Vans -2• Buses -29 • Cars -141

• Trucks -139• Vans -42• Buses -15

-550

Actual

Q3 2016

Volume/

Structure/

Net pricing

Foreign

exchange

rates

Other cost

changes

Actual

Q3 2017

ReconciliationFinancial

Services

+69

Disclosed

items

of which:

• Cars:Specific vehicle recall -230Voluntary service activities -223Remeasurementof inventories* -46

• Trucks:Fixed cost optimization -70

• Cars, Trucks, Buses:Restructuring of own dealer network* -45

• Trucks, Buses:Workforce adjustments* +57

* in Q3 2016

Daimler AG

Contents


Results for Q3 2017

Outlook for 2017


Daimler AG

Mercedes-Benz Cars and Vans: continued product offensive


E-Class All Terrain

E-Class Coupé

GLA facelift

AMG GTRoadster

S-Class facelift

E-Class Cabriolet

X-Class

2017 2018

smart fortwo/forfourelectric drive

smart cabrioelectric drive

S-Class Coupé/Cabriolet facelift

New Sprinter

Daimler AG

Assumptions for automotive markets in 2017


* including light-duty trucks

Car markets

Global

Europe

Medium- and

heavy-duty truck

markets

NAFTA region

EU30

Japan*

Brazil

EU30

Bus marketsEU30

Brazil

around +2%

slight decrease, with Class 8 weaker than Class 6-8

USA

Van markets

Indonesia*

China slight growth

USA

around the prior-year level


slight decrease



significant growth from low level

slight growth

slight decrease

significant growth

significant growth of mid-size and large vans

Daimler AG

2017 sales outlook


Significantly higher unit sales

Further growth particularly in China and Europe

Strong momentum especially from new E-Class models and SUV portfolio


Slight growth in EU30 and Brazil; significant growth in NAFTA region, Indonesia and

India; unit sales around the prior-year level in Japan


Significant growth in core market EU30

Continued momentum from “Mercedes-Benz Vans goes global” strategy


Maintain market leadership in core markets

Unit sales around the prior-year level in EU30 region, significant sales increase in Brazil

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Daimler AG

2017 outlook for EBIT


Significantly above the prior-year level

Around the prior-year level

Slightly below the prior-year level



We expect Group EBIT for FY 2017 to increase significantly

based on the following expectations for divisional EBIT:

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Daimler Financial Services

Daimler AG

Contents


Results for Q3 2017

Outlook for 2017


Daimler AG Q3 and January-September 2017 Results / October 20, 2017 /

Mercedes-Benz Cars: EBIT below prior year due to one-time

effects

Unit sales – in thousands of units –

Q3 2016 Q3 2017


EBIT– in millions of euros –

566597

Q3 2016 Q3 2017

23.3 23.4

Q3 2016 Q3 2017

2,746

2,147

+6% +1% -22%

Daimler AG

Mercedes-Benz Cars: EBIT



* Return on sales

EBIT

Q3 2016

EBIT

Q3 2017

2,746

2,147

- 599

11.8%*

9.2%*

Higher unit sales

Expenses for voluntary service activities in

connection with a comprehensive plan for

diesel engines

Expenses for a specific vehicle recall

Higher expenses for new technologies and

future products


Mercedes-Benz Cars: sales increase by 6% reflecting our

strong product line-up- in thousands of units -

Q3 2016

566597

Q3 2017

105

127

99

18

6

109

124

85

21

8

smart

E-Class

C-Class

A-/B-Class

S-Class

Sports Cars30

32

SUVs186

211


Mercedes-Benz Cars: globally balanced sales structure

- in thousands of units -

Q3 2016

566597

Q3 2017

153

82

83

170

127

90

79

165

Rest of world

Germany

United States

China

Europeexcl. Germany

105109


Mercedes-Benz Cars in China: huge sales growth with higher

share of locally produced vehicles- in thousands of units -

208239

293

400

458

locally produced

imported

2017

YTD 09

201420132012 2015

108

100

123

116

147

146

150

250

143

315

488

2016

171

317


Daimler Trucks: EBIT positively impacted by higher unit sales


Q3 2016 Q3 2017



97

127

Q3 2016 Q3 2017

7.9

9.2

Q3 2016 Q3 2017

464

614

+30% +17% +32%

Daimler AG

Daimler Trucks: EBIT



* Return on sales

EBIT

Q3 2016

EBIT

Q3 2017

464

614

+ 150

5.9%*

6.7%*Higher units sales especially in the NAFTA region

and Asia

Efficiency enhancements

Expenses for planned fixed cost optimization

Higher expenses mainly for raw material, new

technologies and future products


Daimler Trucks: sales increase by 30% mainly driven by

NAFTA region and Asia- in thousands of units -

* European Union, Switzerland and Norway

Q3 2016

97

127

Q3 2017

21

45

8

40

21

31

8

28

Rest of world

Latin America

NAFTA region

EU30*

Asia9

13


Daimler Trucks: incoming orders increase primarily driven by

NAFTA region and Indonesia


- in thousands of units -

Q3 2016

84

117

Q3 2017

19

35

8

43

17

24

7

29

Rest of world

Latin America

NAFTA region

EU30*

Asia7

12


Mercedes-Benz Vans: EBIT below prior-year level due to high

investment in new products


Q3 2016 Q3 2017



85.293.1

Q3 2016 Q3 2017

3.1 3.1

Q3 2016 Q3 2017

312

218

+9% -30%-1%

Daimler AG

Mercedes-Benz Vans: EBIT



* Return on sales

EBIT

Q3 2016

EBIT

Q3 2017

312

218

- 94

10.0%*

7.1%*Higher unit sales

Higher expenses for new products and raw material

End of contract manufacturing


Mercedes-Benz Vans: sales increase by 9% due to market

success of attractive product portfolio- in thousands of units -

Q3 2016

85.2

93.1

Q3 2017

6.2

14.6

26.0

46.2

5.8

12.7

20.5

46.2

Vito

V-Class

Citan

Sprinter


Daimler Buses: negative exchange-rate effects and cost

increases only partly offset by higher unit sales


Q3 2016 Q3 2017



6.2

7.2

Q3 2016 Q3 2017

0.91.0

Q3 2016 Q3 2017

45

26+17% +8% -42%

Daimler AG

Daimler Buses: EBIT



* Return on sales

EBIT

Q3 2016

EBIT

Q3 2017

45

26

- 19

4.8%*

2.6%*

Sales increase in Latin America

Efficiency enhancements

Foreign exchange rates

Cost inflation mainly in Latin America


Daimler Buses: sales increase by 17% mainly driven by Latin

America- in thousands of units -

Q3 2016

6.2

7.2

Q3 2017

1.9

0.8

2.1

1.6

1.8

1.2

1.0

1.2

Rest of world

Brazil

Mexico

EU30*

Latin America(excl. Brazil and Mexico)

0.9

0.8



Daimler Financial Services: further business growth

New business – in billions of euros –

Q3 2016 Q3 2017

Contract volume– in billions of euros –


15.717.4

12/31/2016 9/30/2017

132.6 135.8

Q3 2016 Q3 2017

438507

+11% +2% +16%

Daimler AG

Daimler Financial Services: EBIT



* Return on equity

EBIT

Q3 2016

EBIT

Q3 2017

438

507

+ 69

17.7%*

18.5%*

Higher contract volume

Cost of risk

Higher interest-rate level


Daimler Financial Services: further increase in contract

volume to 135.8 billion euros (+2%)- in billions of euros -

12/31/2016

132.6 135.8

9/30/2017

23.8

33.9

50.5

27.5

21.8

31.6

54.2

24.9

Americas

Europe (excl. Germany)

Germany

Africa & Asia-Pacific


Daimler Financial Services: net credit losses* at low level

due to disciplined risk approach

* as a percentage of portfolio, subject to credit risk

0.69% 0.68%

0.50%

0.61%

0.36%

0.51%

0.89%0.83%

0.43%

0.34% 0.37%0.31%

0.24%0.31%

0.25%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2017

YTD

2015 2016

Daimler AG

Disclaimer


This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,”

“estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements.

These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of

demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure

including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production

or financial services activities; changes in currency exchange rates; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible

lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases

for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used

vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a

significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government

policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of

investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some

of which we describe under the heading “Risk and Opportunity Report” in the current Annual Report. If any of these risks and uncertainties materializes

or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those

we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based

solely on the circumstances at the date of publication.

results for q3 2017 - daimler ag · 2017-10-22 · daimler ag highlights of q3 2017 q3 and...

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